Hypothetical run towards financial freedom.

[duncan macgregor]

MICK, You need to work out your arithmetic a bit better than that. A house will double in value every ten years work on that and have anothher go. macdunk

[Elise]

Compounding, that means 7% pa, MacDunk

[fish]

conversely if house prices increase by 10%pa they double in value every 7 years
It looks like macdunk has a better investment than he believes

No direct property investments and total increase in wealth after spending probally more than I earnt from part time casual employmet is 20% per annum excluding the freehold property I live in. But including Bank deposits and other investment returns as well as the value of shareholdings. Value at start of year to value at end of year. over last 3 years. 14.39% year to date so why muck around with rental properties, and there low yield.

[duncan macgregor]

ENIGMA,You muck around with the banks money with the tenant paying it off, with very little or none of your own money involved after the first couple of years. Different ways for different folks. That way you can get very big in the shortest possible time. macdunk

Been there done that and do not like it because I calulate the actual costs if I leverage my investments to same extent property would not have a look in. Leveraged it could be 150% per year.

[Mick100]

How are you going to pay your interest bill if your only earning a return of 4.46% on the property Macdunk (as above)

That's a negitive return and that's the position that a lot of landlords are finding themselve in today. The rents are lagging well behind the capital apreciation of their peoperties
Where I live rents are going down, not up
,

[duncan macgregor]

MICK, I never only get 4.46% we were only debating figures given. Its obvious you are not in the property market so stick to what you know best. macdunk

[Mick100]

quote:Originally posted by duncan macgregor

MICK, I never only get 4.46% we were only debating figures given. Its obvious you are not in the property market so stick to what you know best. macdunk

Yes, that's good advise Macdunk
And I think you should do likewise
Stick to building/property

,

[wns]

quote:Originally posted by duncan macgregor
This bad investment will double in price over ten years, along with the rent. The return on this bad investment will rise on average 10pc per annum

Can you guarantee that? Of course you can't.

The only guaranteed return for the $700k property if they rent it out for $600pw is the net rental yield of 3.5% or whatever it works out to be.